UBS trims 2014 Silver price forecast from $25 to $20.50 an ounce

ZURICH (Scrap Register): UBS Investment Research has trimmed its silver price forecasts for next year from $25 previously to $20.50 an ounce while it cut its gold price forecast from $1325 to $1,200 an ounce.

Swiss bank also cut its average silver price forecast for 2015 from $24 previously to $21per ounce and they left the 2015 and more distant gold forecasts unchanged from previous calls.

“The struggle for gold not only rests with the predominant selling interest amongst investors currently, but with limited positive catalysts looking forward; gold is unlikely to regain its former appeal,” said UBS Analyst Joni Teves and Strategist Edel Tully.

“The more upbeat outlook on the global economy, the reduction of tail risks, and the growing appetite to take on more risk suggests that safe havens like gold will become even more unfashionable up ahead. The yellow metal’s performance this year highlights the extent to which gold has lost its allure and implies that it will take a very substantial change in the macro picture for this to be reversed,” said UBS in a Precious Metals research note.